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Wednesday, 02 October 2019

Goldman Sachs Takes Lead in CMBS Loan Contributor Ranking

Goldman Sachs contributed $1.9 billion of loans to CMBS deals, a mix of conduits and single-borrower transactions, during the third quarter. It edged out Wells Fargo Bank, which contributed $1.8 billion. That was enough to allow it to edge out Citigroup among loan contributors to CMBS so far this year.

Commercial Real Estate Direct Staff Report

Goldman Sachs contributed $1.9 billion of loans to CMBS deals, a mix of conduits and single-borrower transactions, during the third quarter. It edged out Wells Fargo Bank, which contributed $1.8 billion.

That was enough to allow it to edge out Citigroup among loan contributors to CMBS so far this year. Citi had led the loan-contributor ranking through the first half of the year, with a 12.6 percent share of the market. But since the end of June, Goldman funded loans that it contributed to three single-borrower deals and two conduit transactions, including GS Mortgage Securities Corp. II, 2019-GC42, to which it sold $651.7 million of loans, or nearly two-thirds of that deal's total collateral balance. Citi, meanwhile, contributed to eight transactions.

Top Loan Contributors

Domestic, Private-Label CMBS

 

3Q2019

3Q2018

Loan Contributor

#loans

Vol $mln

Mkt Shr%

Vol $mln

Mkt Shr%

Goldman Sachs

44.28

1,883.06

10.35

2,712.21

15.38

Wells Fargo Bank

66.50

1,831.72

10.07

1,569.82

8.90

Morgan Stanley

81.00

1,680.83

9.24

1,995.12

11.31

JPMorgan Chase Bank

39.30

1,621.31

8.92

2,775.06

15.73

Citigroup

58.42

1,592.12

8.75

1,470.35

8.34

Bank of America

41.50

1,513.52

8.78

964.72

5.47

Deutsche Bank

47.25

1,505.30

8.28

1,452.75

8.24

Rialto Mortgage Finance

27.75

631.14

3.47

294.22

1.67

Societe Generale

24.00

512.54

2.82

332.60

1.89

Argentic Real Estate Finance

30.00

507.89

2.79

263.44

1.49

Cantor Commercial Real Estate

51.00

506.29

2.78

357.43

2.00

UBS

33.00

462.18

2.54

618.34

3.51

Starwood Mortgage Funding

38.00

461.37

2.54

397.44

2.25

3650 REIT

17.00

396.50

2.18

0.00

0.00

Barclays Bank

17.00

358.90

1.97

651.93

3.70

Natixis

5.00

348.32

1.92

628.51

3.56

KeyBank

15.00

310.64

1.71

132.30

0.75

Ladder Capital Finance

30.00

251.37

1.38

101.98

0.58

Principal Commercial

11.00

250.70

1.38

0.00

0.00

National Cooperative Bank

46.00

176.41

0.97

143.08

0.81

CIBC World Markets

17.00

164.61

0.91

93.55

0.52

Credit Suisse

5.00

137.83

0.76

562.85

3.19

Benefit Street Partners

9.00

131.07

0.72

122.99

0.70

TOTALS  

17,235.62

 

17,640.69

 

Evident in the third quarter was the reduction in the volume of large loans that were securitized on a stand-alone basis, as the profitability of those transactions has declined sharply. But that doesn't mean securitized lenders aren't writing them. They are. They're just sprinkling pieces among larger numbers of conduit deals, which lately have generated hefty profits for their lender participants.

For instance, Wells Fargo, JPMorgan Chase Bank, Morgan Stanley, UBS and Goldman Sachs originated a $760 million senior loan against the Grand Canal Shoppes retail property on the Las Vegas strip. So far, pieces of that loan have found their way into seven conduit deals. In other times, the loan likely would have been securitized through a single-borrower deal. Each of the originators received credit for the piece they funded and securitized.

Top Loan Contributors

Domestic, Private-Label CMBS

 

9Mos2019

9Mos2018

Loan Contributor

#loans

Vol $mln

Mkt Shr%

Vol $mln

Mkt Shr%

Goldman Sachs

106.09

6,613.84

11.50

6,562.39

11.35

Citigroup

159.66

6,456.58

11.23

4,509.26

7.80

Deutsche Bank

114.03

5,529.54

9.62

6,993.50

12.10

Morgan Stanley

165.10

5,218.25

9.07

4,719.87

8.17

JPMorgan Chase Bank

132.06

4,948.49

8.60

8,566.76

14.82

Bank of America

90.11

4,590.10

8.12

2,654.78

4.59

Wells Fargo Bank

172.16

4,423.00

7.69

4,631.70

8.01

Credit Suisse

26.20

3,021.31

5.25

2,360.95

4.08

Barclays Bank

57.90

2,413.32

4.20

2,961.86

5.12

Societe Generale

59.00

1,518.03

2.64

1,327.33

2.30

UBS

91.20

1,395.13

2.43

1,640.19

2.84

Cantor Commercial Real Estate

56.25

1,292.66

2.25

1,109.86

1.92

Rialto Mortgage Finance

113.00

1,267.84

2.20

786.09

1.36

LoanCore Capital Markets

48.00

1,087.32

1.89

643.72

1.11

Natixis

12.00

1,075.95

1.87

2,948.91

5.10

Starwood Mortgage Funding

82.00

986.18

1.71

1,025.96

1.77

Argentic Real Estate Finance

52.00

908.12

1.58

940.59

1.63

KeyBank

56.25

801.89

1.39

587.88

1.02

3650 REIT

36.00

729.23

1.27

0.00

0.00

Ladder Capital Finance

66.00

658.82

1.15

939.48

1.63

ReadyCap

95.00

399.20

0.69

164.96

0.29

Benefit Street Partners

17.00

303.15

0.53

353.58

0.61

National Cooperative Bank

77.00

296.72

0.52

359.90

0.62

Principal Commercial

11.00

250.70

0.44

0.00

0.00

CIBC World Markets

28.00

248.26

0.43

269.78

0.47

C-III Commercial Mortgage

22.00

125.11

0.22

179.86

0.31

Blackstone Mortgage Trust

0.00

0.00

0.00

517.50

0.90

China Merchants Bank

0.00

0.00

0.00

43.80

0.08

TOTALS

1,945.00

56,558.72

 

57,800.46

 

Meanwhile, the average size of loans securitized so far this year has declined by more than 12 percent from the same time last year. But that too could be a function of lenders slicing up large loans and sprinkling them among a number of deals as each loan piece is counted as one loan.

Loans contributed to CMBS by Natixis so far this year have been the largest among loan contributors, with an average size of $89.7 million. Early last year it wrote a sizable number of large loans that it securitized through stand-alone deals. It's still focusing on large loans, but is increasingly contributing them to multiple deals.

If Natixis' loans are excluded, loans contributed by Goldman Sachs so far have been the largest, with an average size of $62.3 million. That too is a function of Goldman's prowess in the large-loan business.

On the other side of the spectrum is National Cooperative Bank, whose average loan size is $3.9 million. The company specializes in writing loans against residential cooperative properties. Its loans typically are written with full recourse to their borrowers, which are usually nonprofit groups that are set up to maintain coop buildings.

Another outlier is ReadyCap, which writes only small-balance loans. It securitized $399.20 million of such loans in January.

So far this year, 26 lenders participated in the CMBS market. That's unchanged from last year. But it includes 3650 REIT, which was founded in April 2018 by Jonathan Roth, Justin Kennedy and Toby Cobb, and only started contributing loans this year. MUFG Principal Commercial, meanwhile, a venture between Principal Real Estate Investors and MUFG Union Bank, which didn't contribute to the CMBS market last year, contributed $250.7 million of loans this year. It has, however, exited the conduit market.

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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